In a strategic move to position itself as a technology powerhouse, Qatar has officially partnered with US chip giant Intel to build an advanced chip packaging plant. The 1,20,000 sq m facility is slated to begin production in 2027, focusing on the backend manufacturing of artificial intelligence (AI) chips for the Middle East and Africa.
The agreement, announced this month, represents a major step for Qatar’s goal to create a high-tech domestic industry and reduce its reliance on imported AI hardware. Officials state that the plant will focus on the most complex part of chipmaking, with production prioritised for regional data centres, smart grids, and autonomous driving projects.
Advanced 3D Packaging Technology
The plant will leverage Intel’s advanced Foveros 3D packaging technology that stacks silicon dies vertically to create smaller, more powerful, and more efficient computer chips. The facility will produce 5 million high-performance AI chip packaging modules annually, making it a critical hub for the region’s AI supply chain.
In addition to manufacturing, Intel is also committing to a comprehensive technology transfer to a Qatari technical team.
Local Investment and Development
The partnership extends beyond manufacturing to include significant investments in local talent development. An ‘AI Hardware Engineering College’ will be established by the partners at Qatar University to train 300 local engineers in the first phase, with the project expected to create 2,000 high-tech jobs in the country.
Economic and Strategic Implications
The plant’s strategic importance is expected to reduce Qatar’s dependence on imported AI hardware by 40%. The partnership is a key component of Qatar’s plan to boost its domestic technology sector and cement its role in the global digital economy. The facility is part of a broader Middle East computing race, with neighbouring countries also making heavy investments in digital infrastructure.
While the region faces challenges like a tech talent shortage and supply chain risks, the collaboration marks a significant move towards building a more resilient and self-sufficient AI hardware supply chain for the Middle East. The technology transfer clause, which breaks with previous US export frameworks, is a notable aspect of the deal.
